Live Nation Entertainment Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LONG-LIVED ASSETS

LONG-LIVED ASSETS

12 Months Ended

Dec. 31, 2023

LONG-LIVED ASSETS [Abstract]

LONG-LIVED ASSETS

LONG-LIVED ASSETS, INTANGIBLES, AND GOODWILL

Property, Plant and Equipment, Net

Property, plant and equipment includes expenditures for the construction of new venues, major renovations to existing buildings or buildings that are being added to our venue network, the development of new ticketing tools and technology enhancements along with the renewal and improvement of existing venues and technology systems, web development and administrative offices.

Property, plant and equipment consisted of the following:


	December 31,
	2023		2022
	(in thousands)
Land, buildings and improvements	$	2,043,595	$	1,648,488
Computer equipment and capitalized software	888,065		910,793
Furniture and other equipment	646,966		535,719
Construction in progress	317,028		244,618
Property, plant and equipment, gross	3,895,654		3,339,618
Less: accumulated depreciation	1,794,191		1,851,955
Property, plant and equipment, net	$	2,101,463	$	1,487,663

Definite-lived Intangible Assets

The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the years ended December 31, 2023 and 2022:


	Client / vendor relationships		Revenue- generating contracts		Venue management & leaseholds		Trademarks and naming rights		Technology and Other (1)		Total
	(in thousands)
Balance as of December 31, 2021:
Gross carrying amount	$	576,930	$	593,258	$	232,856	$	180,865	$	47,749	$	1,631,658
Accumulated amortization	(178,725)		(275,909)		(46,929)		(79,349)		(24,408)		(605,320)
Net	398,205		317,349		185,927		101,516		23,341		1,026,338
Gross carrying amount:
Acquisitions—current year	46,432		32,919		11,562		—		—		90,913
Acquisitions—prior year	(7,435)		255,086		(92,290)		7,007		318		162,686

Foreign exchange	(12,923)		(9,308)		(3,491)		685		(2,364)		(27,401)
Other (2)	(39,794)		(47,170)		(615)		39		(9,967)		(97,507)
Net change	(13,720)		231,527		(84,834)		7,731		(12,013)		128,691
Accumulated amortization:
Amortization	(75,369)		(93,290)		(14,277)		(18,382)		(15,534)		(216,852)

Foreign exchange	4,402		5,561		1,783		335		178		12,259
Other (2)	40,174		47,057		835		(535)		12,655		100,186
Net change	(30,793)		(40,672)		(11,659)		(18,582)		(2,701)		(104,407)
Balance as of December 31, 2022:
Gross carrying amount	563,210		824,785		148,022		188,596		35,736		1,760,349
Accumulated amortization	(209,518)		(316,581)		(58,588)		(97,931)		(27,109)		(709,727)
Net	353,692		508,204		89,434		90,665		8,627		1,050,622
Gross carrying amount:
Acquisitions—current year	46,767		136,117		77,329		—		21,789		282,002
Acquisitions—prior year	(6,681)		(1,830)		(11)		—		—		(8,522)

Foreign exchange	17,070		57,797		3,960		8,151		(104)		86,874
Other (2)	(36,930)		(91,612)		(2,512)		(13,254)		(37,201)		(181,509)
Net change	20,226		100,472		78,766		(5,103)		(15,516)		178,845
Accumulated amortization:
Amortization	(75,994)		(103,756)		(22,186)		(18,390)		(17,303)		(237,629)

Foreign exchange	(3,019)		(7,900)		(1,132)		(1,448)		(408)		(13,907)
Other (2)	36,882		91,612		2,688		13,733		38,775		183,690
Net change	(42,131)		(20,044)		(20,630)		(6,105)		21,064		(67,846)
Balance as of December 31, 2023:
Gross carrying amount	583,436		925,257		226,788		183,493		20,220		1,939,194
Accumulated amortization	(251,649)		(336,625)		(79,218)		(104,036)		(6,045)		(777,573)
Net	$	331,787	$	588,632	$	147,570	$	79,457	$	14,175	$	1,161,621

___________________

(1) Other primarily includes intangible assets for non-compete agreements.

(2) Other primarily includes netdowns of fully amortized or impaired assets.

Included in the current year acquisitions amounts above for 2023 are definite-lived intangible assets primarily associated with the acquisitions of certain venue and artist management businesses located in the United States, a concert and festival promotion business in Australia, a promotion business in South America, as well as additions for music publishing rights.

Included in the current year acquisitions amounts above for 2022 are definite-lived intangible assets primarily associated with the acquisitions of a concert promotion business located in Germany, a ticketing business located in Thailand as well as a concert promotion business, a sports management business and a venue management business, which are all located in the United States.

The additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:


	Weighted-Average Life (1)
	2023	2022
	(in years)
Revenue-generating contracts	5	5
Client/vendor relationships	4	4

Technology (1)	3	n/a

Venue management and leaseholds	11	26

All categories	8	7

_____________________

(1) The weighted average life of technology intangibles does not include purchased software licenses that are typically amortized over 1 to 3 years.

Amortization of definite-lived intangible assets for the years ended December 31, 2023, 2022 and 2021 was $237.6 million, $216.9 million and $193.4 million, respectively.

The following table presents our estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets that exist at December 31, 2023:


	(in thousands)
2024	$	234,313
2025	$	203,450
2026	$	172,937
2027	$	137,951
2028	$	122,208

As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization expense may vary.

Indefinite-lived Intangibles

We have indefinite-lived intangible assets which consist of trade names and cryptocurrency assets. These indefinite-lived intangible assets had a carrying value of $377.3 million and $368.7 million as of December 31, 2023 and 2022, respectively.

Goodwill

The following table presents the changes in the carrying amount of goodwill in each of our reportable segments for the years ended December 31, 2023 and 2022:


	Concerts		Ticketing		Sponsorship & Advertising		Total
	(in thousands)
Balance as of December 31, 2021:
Goodwill	$	1,390,451	$	930,064	$	705,717	$	3,026,232
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	955,088		930,064		705,717		2,590,869

Acquisitions—current year	37,386		6,045		—		43,431
Acquisitions—prior year	(76,858)		72,420		(85,168)		(89,606)
Dispositions	(1,792)		—		—		(1,792)

Foreign exchange	239		(28,787)		15,026		(13,522)

Balance as of December 31, 2022:
Goodwill	1,349,426		979,742		635,575		2,964,743
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	914,063		979,742		635,575		2,529,380

Acquisitions—current year	90,298		—		—		90,298
Acquisitions—prior year	1,657		143		—		1,800
Dispositions	(6,183)		—		—		(6,183)

Foreign exchange	4,381		32,645		39,145		76,171

Balance as of December 31, 2023:
Goodwill	1,439,579		1,012,530		674,720		3,126,829
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	$	1,004,216	$	1,012,530	$	674,720	$	2,691,466

Included in the current year acquisitions amounts above for 2023 is goodwill primarily associated with the acquisitions of certain venue and festival promotion businesses located in the United States and Europe as well as a promotion business in South America.

Included in the current year acquisitions amounts above for 2022 is goodwill primarily associated with the acquisitions of concert promotion businesses located in Germany and the United States. Included in the prior year acquisitions above for 2022 is goodwill primarily associated with the acquisition of OCESA. See Note 2 – Acquisitions for further discussion.

We are in various stages of finalizing our acquisition accounting for recent acquisitions, which include the use of external valuation consultants, and the completion of this accounting could result in a change to the associated purchase price allocations, including goodwill and the allocation between segments.

Investments in Nonconsolidated Affiliates

During the year ended December 31, 2023 and 2022, there were no significant sales of investments in nonconsolidated affiliates. During the year ended December 31, 2021, we sold certain investments in nonconsolidated affiliates for $110.2 million in cash and noncash consideration resulting in a gain on sale of investments in nonconsolidated affiliates of $83.6 million.